The present invention relates generally to property investment rating systems and methods. More specifically, the present invention relates to a system and method for managing a large portfolio of property-related investments or potential investments based on pre-determined criteria such as risk and financial performance.
Multifamily housing refers to housing that is subdivided into five or more independent units. Each unit is configured to house a person or a group of people, herein referred to as residents. The number of units in a multifamily housing property can vary from a relatively small number of units to a relatively large number of units.
Often, the residents of a unit in a multifamily property are not the owners of the individual unit or the multifamily property. The residents of the unit pay rent to the owner of the multifamily property for the right to reside in the unit. The rent provides a stream of income to the owner of a multifamily property. The amount of income is the aggregate of the rent received from each of the residents in the multifamily property such as parking fees, laundry fees, retail space rental, and/or various subsidies.
Because the amount of money involved in purchasing multifamily property is often high, most potential purchasers do not purchase the multifamily housing property outright. Rather, the potential purchasers obtain financing, e.g., in the form of debt, equity or bond investments from investors. Investors in such financing arrangements may develop large portfolios of investments in multifamily housing. Managing these portfolios can become difficult for the investor as the total number of loans and/or the total dollar amount of the loans increases. In order to allow investors to manage their investments, it is desirable for investors to have tools to help monitor such things as the property financials, property condition, markets, etc. for the underlying properties.
Accordingly, it would be advantageous to provide a system that provides tools for monitoring the performance of a portfolio of investment properties. It would also be advantageous to provide a system that provides an intuitive rating system for characterizing property related investments. It would also be advantageous to provide an automated system to evaluate potential investments in properties.
It would be advantageous to provide an investment rating system or the like of a type disclosed in the present application that provides any one or more of the these or other advantageous features. It should be understood, however, that the systems/methods disclosed herein may also be used to achieve different and/or additional advantages, without necessarily achieving the advantages described herein.